And I have to assume rental rates for other unit will appreciate higher than inflation, plus my Dad's slight increase in his rent to me 'maybe'...I see this as a net gain for me as even taking a ~$3k loss (yes this doesn't include over costs associated with managing a rental) each year for say 10 years, I save $60k of an original downpayment and can push it all into as tax advantaged vanguard fund gaining hopefully more than my loss on a year over year basis.

I'm excited to surround myself with like-minded investors in the area who are also working to pursue financial freedom/ increase income via investing in assets. 

I'm starting to hear - see little bumps in the market with first time buyers pulling back/ new starts slowing down just a tad nothing serious / rate increases.

We increased the rent from 275$ to 500$ for the upper tenant which he agreed to.

-you don’t have to pay interest on a large fixed sum of money until you find or are ready to pull the trigger on a deal-it allows you lock in some or all of the amount at a fixed rate so your protected against rising interest rates ( given the current market conditions I believe we will see a couple more increases from the Fed this year which will increase borrowing costs for any variable rate products)- See this attached article that does a good job of simplifying it https://www.investopedia.com/mortgage/heloc/fixed-rate-option/

I'm hoping this increases my risk tolerance and marketability to lenders.Any thoughts?  

Honestly it took us about 7 or 8 months last year to find something, and we have been unable to find anything worth doing this year.Brrr and flips seem at best very tight, throw in incredibly large increases in property taxes and not many properties cash flow. 

Leverage is the method investors use to increase cash flow.

I tried to increase all my numbers for worst case scenario and cashflow is at about $350.

I would increase Vacancy Reserve to cover one months rent (8.34%).The remainder of the report looks good if they are realistic numbers.